British economy would benefit from robotics investment

New research from Barclays finds that, over the next decade, investing an additional £1.2 billion into manufacturing processes in order to increase robotics and automation could add as much as £60.5 billion to the UK economy. This is equivalent to nearly two fifths of the manufacturing sector’s value to the economy today.

The pharmaceutical and food manufacturing industries are said to have the most to gain from further investments in automation, with the research showing a more than 10% increase in output between 2016-2020 and close to a 25% rise between 2020-2025 for both sectors.

The Future-proofing UK manufacturing report also reveals that investing in automation technology will help to increase the international competitiveness of the UK’s manufacturing sector through increased manufacturing productivity and efficiency. As a result of additional investment, the manufacturing sector will be worth £191 billion in 2025, £8.6 billion more than currently projected and a 19.6% increase on today.

Furthermore, increased investment in automation will help to soften the expected long-term decline in manufacturing sector jobs by safeguarding 73,500 additional workers in 2025, due to the creation of a larger, more productive and competitive UK manufacturing sector.

In addition, 32,300 more jobs will be supported elsewhere in the economy through the generation of more business in the supply chain, from raw materials through to logistics, as well as the effect of workers spending more widely in the economy. In 2025 alone, this is forecast to represent an additional stimulus worth £3.9 billion.

Mike Rigby, head of manufacturing at Barclays, says, “This report highlights the importance of investing in robotics and automation for manufacturers as a potential solution to the ongoing ‘productivity puzzle’.

“By investing an additional £1.2 billion in automation technologies over the next decade, the UK manufacturing sector is forecast to create an additional £60.5 billion of economic output and safeguard more than 105,800 jobs throughout the wider economy.

“However, to reap these rewards we need to address some of the barriers to investment, including the need for more user friendly and flexible technology, addressing skills barriers within the sector and supporting manufacturers to access the funding and information already available to them for robotics investment.”